Vivier lawyer says deregistration over 'inflammatory article' a breach of natural justice

Monday 24th August 2015

Vivier & Co, which counts one-time political operator Luigi Wewege as a director, is appealing a Financial Markets Authority decision to strip it of its registration as a financial services firm, saying the regulator used an “inflammatory article” as the basis for the deregistration.

Appearing in the High Court in Wellington before Justice Timothy Brewer, Vivier counsel Andrew Riches said the FMA only began to investigate the firm after a member of the public passed on an online news article linking the company to sub-prime mortgages in Ireland, and the person questioned whether that reflected badly on the reputation of New Zealand’s financial regulation.

Justice Brewer has imposed an interim order suppressing publication of the person’s name.

The regulator removed Vivier from the Financial Services Providers Register because it didn’t believe the company was providing services in New Zealand.

Riches told the court that in the notice of deregistration, the FMA didn’t mention the article, which he said was a breach of natural justice.

The FMA denies it deregistered Vivier as a result of the article although the regulator did say it started investigating Vivier after the article noted that the Department of Internal Affairs was no longer overseeing Vivier under anti-money laundering and countering financing of terrorism legislation.

The hearing is set down for one day and is continuing.

BusinessDesk.co.nz

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